How trades work

Every trade on Blue Clay is a synthetic swap between you and the Kiln. There is no order book, no matching engine and no other counterparty. Nothing is traded on Hyperliquid itself: Hyperliquid only supplies the price.

Opening

When you open a position the program reads the best-bid/best-offer mid for that market and locks it as your entry. Your margin moves from available collateral into the position. Order value is margin × leverage.

While open

PnL is linear in the mid: a long gains (mid ÷ entry − 1) × order value, a short gains the opposite. Because no real perpetual is held, there is no funding to pay or receive.

Closing

Closing reads the mid again and settles the difference with the Kiln. A profit is paid from the Kiln, less the profit haircut. A loss is paid into the Kiln and mints CLAY to you.

Size limits

Each position is capped at $1,000,000 of order value, and each market has an open-interest cap so the Kiln is never exposed beyond what it can carry.